During the AMA for our podcast, we were asked about holding TQQQ and TECL as long-term investments. Both have delivered massive returns, but I wanted to explain why an underlying investment simply going up may not be enough. The attached chart shows one counterexample. From December 2008 through December 2025, EEM gained about 218%, while the 3× daily ETF EDC lost about 6%. A positive underlying return is not enough. The return must be strong enough relative to the volatility and costs for a 3× daily ETF to outperform over time. https://karyungtom.com/2026/08/17/how-3x-leveraged-etfs-work
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ETF Go@etf.go · 7h
Yup. Lots of these examples exist. Return path matters. A fairly ordinary drawdown has the ability to cause lasting damage. 👍 This is a snapshot I had saved (may have shared?) on $MSTR a while back. I’d hate to see it now. 👀
You said it a comment. this is meant as day trading instrument, I watch on YT TraderTV Live, and they will use these , but always exit out by end of the day since it resets daily. The only situation this works long term is NASDAQ with its unprecedented continuous run up and birth of Mag 7… I’m less worried about AI bubble but more the possible rug pull on typical retail investor suffering from Dunning Kruger effect.
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